Gov. Kathy Hochul gave some tone-deaf advice to businesses as they force customers to pay more because of congestion pricing — saying Thursday they should use overnight deliveries to save money.
The governor said businesses should handle deliveries overnight when the congestion toll to enter downtown Manhattan is “off peak” — in comments that were roundly slammed by industry leaders.
“So I understand the pressures on businesses, but also they should be definitely looking at the lower cost points for deliveries at different hours,” she told reporters at an unrelated press conference where she was asked how she felt about the trickledown effects of the controversial toll.
Delivery trucks can be hit with fees ranging between $14.40 and $21.60 during the busiest parts of the day, but the prices drop down to $3.60 and $5.40, respectively, during off peak hours between 9 p.m. and 5 a.m.
“There’s tremendous benefits to congestion pricing, and I would ask businesses to understand that when we reduce congestion and make it easier to get around New York City, particularly businesses that rely on delivery trucks, that was a huge area of concern,” she added.
Business leaders scoffed at Hochul’s advice.
“It reveals the Governor’s lack of understanding of how businesses run,” Limo Association of New York president Jeff Rose said.
“Who will be there to accept the deliveries at those hours and how much will the additional staffing cost? Regular retail stores would have to pay folks to wait for deliveries, which may require more than one person to receive.
“Restaurants cannot handle deliveries during the dinner hours so they would have the same issues.”
Zach Miller, vice president of government affairs at the Trucking Association of New York, said while Hochul’s recommendation “sounds simple,” few businesses have staff on-site overnight to take in deliveries.
“In order to do that, companies would need to pay additional personnel to accept the freight – negating the benefit of the lower congestion fee for off-peak deliveries,” he said.
“Our customers cannot absorb all these added costs of doing business in New York City—and neither can we. Trucks are charged per trip regardless of the time of day.
“There is no ‘lower-cost option’ here. These are real-world constraints, not scheduling preferences, and the burden ultimately falls on the businesses and consumers who keep this city running.”
Hochul’s comments came a day after a Post report about the trucking industry and other business leaders facing higher costs from the congestion zone that are either cutting into their bottom line or being passed off to customers.
In some cases, delivery companies are even whacking customers with a fee outside of the congestion zone because the administrative costs and burden to keep up with which deliveries actually triggered a toll is too burdensome.
There are also questions over how much congestion pricing is driving down traffic with motorists claiming to The Post driving is still hell on wheels for them.
MTA data claims traffic is down double-digits, though analysts have questioned the way the agency is collecting and comparing its figures. The toll, which takes $9 for cars, has pulled in more than $500 million into the cash-starved MTA’s coffers so far this year, exceeding expectations.
Hochul, who is up for reelection next year, had previously paused the toll and admitted it was a financial burden but changed course once the 2024 election had passed. Since its rollout in January, she has touted the program — and kept defending it Thursday.
“Because it is important to ensure that we take back our city, and it was becoming far too clogged and immovable. We had the worst congestion I believe in the country,” she said.
“And it’s working. It’s working. And in fact, we’ve seen a [subway] ridership increase about 10 or 11% shows that people have found an alternative. So that is what the outcome is exactly looking for.”
But Republican lawmakers have long argued the program isn’t changing much.
“We told you so!” Queens Council Member Joann Ariola.
“We said right from the start that this would be little more than another tax on working New Yorkers driving into Manhattan, and now we’re being proven right.
“I see it myself driving to work from Queens. Traffic is just as bad, if not worse, than it ever was, only now we have to pay a new toll on top of it. Thanks for nothing, Kathy!”
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